It was not easy for our founder, Kaki Reddy, in the beginning. Before she began her path to the Montessori world, she was a software engineer working at Alcatel and 21 weeks pregnant with her second child. Her husband, Alex, had started a technology company from the ground up with his own money and no salary. After a routine checkup, she was rushed to the hospital due to problems that could cause premature birth of her child. She was bedridden for the next four months to prevent a premature labor.
Four weeks after entering the hospital, due to the telecom industry bottoming out in 2000, she lost her job. Now neither her nor Alex had income or medical insurance. Under these trying circumstances, she decided to reinvent herself and start something new. Watching her first daughter in a Montessori setting, she knew she had a passion for the education of children, more specifically the Montessori method. Kaki and Alex went on this new adventure together, taking a risk, but believing in what they wanted to accomplishment.
While she was bedridden, Alex started looking for the perfect location for a new Montessori school and found it in Murphy, TX. She found a phenomenal, experienced Montessori teacher, Aline Lage, and they began a great partnership. At the time, she did not have any money to put into this dream, therefore, she borrowed from her relatives and used up her 401K. Through all these trials and tribulations, she started her new Montessori school.
She did receive some good news while still in the hospital which entailed a new job. This gave some much needed relief in the form of salary and medical insurance. She did have a beautiful, healthy baby girl. Her daughter was one of the first children to attend her new school and continued in Heritage Montessori Academy of Murphy until 4th grade. With the experience of having her healthy child and starting a new school, Kaki accepted God’s grace and embarked on taking Maria Montessori’s method of child education into the 21st century.
The moral is if you truly believe in yourself and you work hard, you can turn trials and adversities into golden opportunities. Kaki and Alex opened two more schools and decided they wanted to share their experiences. With the knowledge they acquired in running their own schools, they decided to extend their dreams into developing franchise Montessori schools across the country. Their franchise system allows franchisees to own their own business and in addition contribute to their community and the future of children. Kaki and Alex have developed a detailed system that allows others to share in their passion for the Montessori method which brightens the future of our society.
- 64% of women with under 6 years old children are in the labor force today.
- 81% of single parents with children are in the labor force today.
- 55% of all mothers who give birth to their first child are back at work within the first 6 months.
- Affluent and educated population is growing and so is the demand for Montessori schools.
- Child care is a necessity for families, not a luxury or a new trend.
- Dual income is a necessity.
- Child care centers are fairly easy to manage due to the intellectual nature of staff and parents compared to similar revenue generating retail or restaurants.
Franchise Term & Fees Quick Glance
- Franchise Fee: $60,000
- Demographic Research and Site Dev Fee: $49,500
- Design and Engineering Management Fee: $49,500
- Construction Management Fee: $50,000
- Franchise Term: 15 Years
- Royalties: 6% of the gross revenue
- Brand Marketing: 1% of the gross revenue
- Daily Operations Management: 3% of the gross revenue (Optional for qualified operators)
- Land: 1.5 Acre – 2 Acre
- Building: 10,800 sq. ft.-16,800 SQ.FT.
- Total Project Cost: Approx. 3.1-5.2 Million
- Cash Required: $500,000- $600,000 (assuming SBA loan at 15% down payment)
- Project Time: 24 – 28 months
- Exit Strategy- None, Transfer of Franchise
Review FDD for Details on Fees & Terms
- Initial Contact– Contact us by calling 1-866-333-6867 or email us at email@example.com. In this conversation, we will try to answer all the initial and basic questions about the industry and Pinnacle franchise. We will also determine the date and time for the next meeting, which is called a Discovery Day.
- Franchise Application– After the our initial conversation, you will be required to fill out the franchise application. Upon completion of your franchise application, this will be sent to our internal team for review and pre-approval for awarding the franchise to you. Your business experience, investment level, available territories in your desired area will help us decide the best solution for you.
- Discovery Day– After your franchise pre-approval, you will be asked to make a trip to our corporate office in Richardson, Texas. In addition to meeting the team, we will discuss the project and possibilities face to face. You will also take a trip to one of our existing schools in the area with us. At the end of the visit, we will hand you our Franchise Disclosure Document (FDD) which you will need to review.
- FDD Review- Franchise laws require you to review the FDD for a minimum of 14 days. Our franchise experts will help you understand the terms and conditions of the franchise agreement, but taking assistance from a legal counsel or attorney is advised.
- Franchise Agreement Signing- Once you have understood and agreed with the terms and conditions of the franchise agreement, you will sign the franchise agreement and submit the franchise fee amount payable to Pinnacle Montessori Franchise. Congratulations and welcome to Pinnacle family!!
- Franchise Development and Support Introduction- After the franchise agreement signing process, you will be introduced to the franchise support team, who will help you with the next steps.
- Site Selection- We will assign a ‘general territory’ in the area of your interest and find up to three locations for you to pick. A detailed demographic research will be done to gain knowledge of the factors affecting the site presently and in the future.
- Lending Process- We will help you apply for the loan. Our experience and in-depth knowledge of SBA lending makes the lending process somewhat smoother for you. This process typically takes 2 to 3 months.
- Construction- Once your loan has been approved, the contractor will start construction, which will typically take 8-10 months to finish.
- Recruiting and Training- We will help you recruit your center directors and train them either at our office or at our existing schools.
- Pre-opening Marketing- We will help you with the pre-opening marketing so you can start the school with a decent number of pre-enrolled children.
- School Set-up and Opening- Our school setup experts will help you order the Montessori materials and setup the school. Once setup is complete and the building has passed all compliance requirements by different agencies, we will be open for business.
- How much cash is required to open a school?Total project cost is approximately $3.5 to 5 million. Typical cash requirement for such loan is $500K-600K. Keep in mind these loans are typically paid off in 15 to 20 years giving you a great real estate asset that keeps growing in value. If owning land and building is not your priority, then the total project cost is $350K-$600K. Typical cash needed in this case is approximately $150K.
- How do I know if I will qualify for a loan?You must show enough cash flow from your existing salary and other income that covers the business mortgage. Typically, the yearly mortgage is in the range of $240K-336K for a loan of $3.5M-$5.2M.
- What if I do not have the entire amount of cash required for the down payment?Most franchisees are partnerships. Consider talking to friends and family. This will also help you own a second location sooner.
- Can the franchisor find me partners or operators?Absolutely. We usually have a number of operators, investors and prospects looking for partners in our pipeline. Give us a call at 1-866-333-6867
- Is the franchise fee and royalty negotiable?No. We treat every franchisee the same excellent way!!
- How long does it take to open the school?New school construction is typically a 1.5 -2 years project. Leasing can be possible in 8-12 months.
- How long is the franchise agreement for?15 years.
- Can I walk out of the agreement before the term ends?No. You can always transfer your franchise to a new buyer.
- What happens if I decided to quit this business before the franchise agreement term ends?You should find a buyer for the business. We will assist you in the process. If you quit without transferring, there will be penalties. You should request for FDD to research the penalties.
- How do I know if I will qualify as a franchisee?Must have required cash, a good credit score, and a passion for children and education. Furthermore, an understanding of a broad picture which is tremendous real estate gain in addition the school profits.
- What risks do I face in business?The main risk is competition and location analysis. We have a comprehensive method and detailed analysis that minimizes this risk and one of the main reason franchisees take our particular franchise and is our core strength.Partnership risks between your business partners are minimized by us managing the work load, effort, communication by training and best practice sharing.Financial risks are minimized by cost controls, timing, financial planning, cash flow management, and operational excellence.
- Am I required to work at my school?No. Our schools are operated by the directors following the process set by the franchise. They take guidance from franchise support on the daily basis. However, you must be available to look after your business when needed.
- How much time do I need to dedicate at my school?With our turnkey support model, you are expected to spend less than a few hours every month checking on reports and attending board meetings.
- Can we lease instead of constructing a new building?Yes. However, we strongly recommend owning the real estate due to much greater financial advantage.
- What if I am opening in an area where land is very expensive?A multi-story building design will be considered to save cost on the land.
- How many students can a typical Pinnacle Montessori has in one school?Our schools are typically licensed for 210-245 students.
- How do I get started?Get started today by contacting our franchising team at 1-866-333-6867 or emailing us at firstname.lastname@example.org
Past and Current Schools:
- Heritage Montessori Academy of Allen
1222 Alma Rd, Allen, TX-75013
- Heritage Montessori of Murphy
120 Heritage Pkwy, Murphy, TX- 75094
- Pinnacle Montessori of San Antonio
19730 Bulverde Rd, San Antonio, TX 78259
Past and Current Schools:
- Pinnacle Montessori of Alamo Ranch
11400 Culebra Rd, San Antonio, TX 78259
- Pinnacle Montessori of Keller
1685 Keller Pkwy, Keller, TX 76248
- Pinnacle Montessori of Frisco
6555 Dallas Pkwy, Frisco, TX 75034
Pinnacle Montessori Academy is projecting to open 25 new locations by the end of 2019. Contact Krishna Bhaskar at 214-794-5370 for information on franchise investment opportunities.
- Franchisee is Willing to Follow Our System
- Franchisee is Willing to Follow Our Process and Logistics
- Franchisee is Willing to Have a Turn-Key Approach
- Franchisee does not have a tendency to negotiate
- Franchisee understands that City, Vendors, Engineers, don’t report to us. We don’t control their schedules or motives. Delays and hiccups are part of opening a project this size.
- Franchisee understands that construction is the biggest cost, has uncertainties and unpredictable timelines
- Franchisee is Willing to Keep Eye on the Big/Long goal and does not Sweat Small Details